Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.76 percent. Selected operating data for the three divisions follow:

PeakViewGrandSales revenue$ 331,000$ 225,000$ 304,000Cost of goods sold203,000123,000201,000Miscellaneous operating expenses44,00033,00033,000Average invested assets1,250,000960,0001,115,000

Required:

1. Compute the return on investment for each division.
2. Compute the residual income for each division.